Builders risk, arranged before the excavator arrives.
Cover for the project itself while it is being built, the structure, the materials on site, and the money already sunk into it. This is our single largest line of business.
Start a project policy See what’s coveredThe project while it is being built, structure, materials, soft costs
Owners, developers and general contractors on any build or major renovation
The contract clause, completed value, start date and realistic finish
What is builders risk insurance?
It insures a building while it is under construction. If fire, storm, theft or vandalism damages the partly finished structure or the materials waiting on site, builders risk pays to put it back. It runs for the length of the project rather than a year, and it usually ends when the building is complete or occupied, which is the moment a different policy has to take over.
If the policy expires before the project finishes, cover stops while the building is still half-built, and an extension asked for late is not always granted on the same terms. The exposed work, the materials on site and the money already sunk into it become yours.
It is also called course of construction insurance. Lenders and owners almost always require it before work begins, and often before funds are released.
The project, and the money in it.
The structure under construction
Work in place, from foundation to finish, against fire, storm, water, theft and vandalism.
Materials on site
Lumber, fixtures, windows and equipment waiting to be installed, a common theft target.
Materials in transit and in storage
Goods on the way to site or held off-site, which many policies limit unless it is arranged.
Soft costs
Extra interest, extended permits, additional consultant fees and lost rent when a loss delays completion.
Renovations and conversions
Work on an existing building, where the interaction with the owner’s policy needs care.
Liability during construction
Usually a separate but connected policy, injury or damage the work causes to others.
Wood-frame construction is rated, not excluded. Multi-storey wood frame is a case-by-case decision that depends on the project, so we will give you a straight answer on yours rather than a general policy.
Builders risk is the same product everywhere.
So why does the broker matter?
We will not pretend our builders risk wording is uniquely better than anyone else’s. It is a well-established product and we use the same regular and specialist markets other brokers use. Anyone claiming a secret advantage here is selling you something.
What actually differs is timing and accuracy. Whether the policy is in place before the first trade arrives. Whether the term matches your real schedule instead of an optimistic one. Whether soft costs are included when your lender’s agreement requires them. Whether the named insureds match the ownership structure. Whether the certificate says what the owner’s contract demands.
On a live project, that is the part that costs or saves you money, and it is where we compete.
Four ways builders risk policies go wrong.
These are the problems we see most often on projects that arrive from elsewhere. Each one is simple to prevent and expensive to discover.
The term is too short
Projects overrun. If the policy expires before completion, cover has to be extended, and an extension asked for late is not always granted on the same terms.
The value is the contract price
Sums insured should reflect the completed value including materials and soft costs, not simply the number on the contract.
Nobody planned the handover
Builders risk ends at completion or occupancy. If the permanent policy is not ready, there is a gap on a finished building.
A situation we see.
A framing fire on a half-built house takes out three weeks of work and the lumber stacked beside it. Builders risk pays to rebuild the work in place and replace the materials. The general liability policy does not, because nobody else was harmed.
Starting a project policy.
The project
Address, what is being built, and whether it is new construction or work on an existing building.
The numbers
Completed value, and the construction schedule, start date and realistic completion.
The paperwork
The insurance clause from the contract, plus any lender requirements. Send the actual wording.
Who must be named
Owner, general contractor, lender, consultants, anyone the contract requires on the policy.
What builders and owners ask us.
Who buys builders risk, the owner or the contractor?
Either, and the contract usually says which. What matters more is that everyone with a financial interest is properly named, because an uninsured party discovering it after a fire is a dispute nobody needs.
When does builders risk end?
Typically at completion, occupancy, or the policy expiry date, whichever comes first. That last part catches people out on projects that run long, so tell us early if your schedule slips.
Are soft costs covered?
Only if arranged. Extra loan interest, extended permits and consultant fees during a delay can exceed the physical damage on a financed project, and lenders increasingly ask for them.
Is theft from site covered?
Usually yes, and it is one of the most frequent claims, particularly appliances, fixtures and copper. Site security measures can affect both the terms and the price.
Does builders risk cover faulty workmanship?
Generally not the defective work itself, though resulting damage may be covered depending on wording. This is a genuinely important distinction and worth asking us about on your specific project.
I am renovating a building I already own. What do I need?
Tell us before work starts. Renovation changes the risk and your existing property policy may restrict or exclude cover during construction. Getting this sequence right is one of the most common gaps we fix.
What people usually look at next.
Excavating on site? pollution cover covers what a liability policy excludes.
Tell us about the project.
What is being built, what it will be worth, and when you break ground.
BREAKING GROUND SOON? SAY SO. WE TREAT IT AS THE DEADLINE IT IS
Public or larger private projects usually require bonding too. surety bonds.
Larger projects usually demand $5M or $10M in total. umbrella & excess liability.